diff --git a/CMakeLists.txt b/CMakeLists.txt
index e47165a..3b66311 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -31,12 +31,23 @@
 set(CMAKE_C_FLAGS_PACKAGE "-g -O2 -DNDEBUG")
 set(CMAKE_C_FLAGS_DEBUG   "-g -O0")
 
-# set version
-set(LIBNETCONF2_MAJOR_VERSION 0)
-set(LIBNETCONF2_MINOR_VERSION 12)
-set(LIBNETCONF2_MICRO_VERSION 55)
+# Version of the project
+# Generic version of not only the library. Major version is reserved for really big changes of the project,
+# minor version changes with added functionality (new tool, functionality of the tool or library, ...) and
+# micro version is changed with a set of small changes or bugfixes anywhere in the project.
+set(LIBNETCONF2_MAJOR_VERSION 1)
+set(LIBNETCONF2_MINOR_VERSION 0)
+set(LIBNETCONF2_MICRO_VERSION 0)
 set(LIBNETCONF2_VERSION ${LIBNETCONF2_MAJOR_VERSION}.${LIBNETCONF2_MINOR_VERSION}.${LIBNETCONF2_MICRO_VERSION})
-set(LIBNETCONF2_SOVERSION ${LIBNETCONF2_MAJOR_VERSION}.${LIBNETCONF2_MINOR_VERSION})
+
+# Version of the library
+# Major version is changed with every backward non-compatible API/ABI change in libyang, minor version changes
+# with backward compatible change and micro version is connected with any internal change of the library.
+set(LIBNETCONF2_MAJOR_SOVERSION 1)
+set(LIBNETCONF2_MINOR_SOVERSION 0)
+set(LIBNETCONF2_MICRO_SOVERSION 0)
+set(LIBNETCONF2_SOVERSION_FULL ${LIBNETCONF2_MAJOR_SOVERSION}.${LIBNETCONF2_MINOR_SOVERSION}.${LIBNETCONF2_MICRO_SOVERSION})
+set(LIBNETCONF2_SOVERSION ${LIBNETCONF2_MAJOR_SOVERSION})
 
 # build options
 option(ENABLE_SSH "Enable NETCONF over SSH support (via libssh)" ON)
@@ -106,7 +117,7 @@
 endif()
 
 if (NOT RPM_BUILDER)
-    message(WARNING "Missing tools (rpm package) for building rpm package. \nYou won't be able to generate rpm package from source code.\nCompiling libnetconf2 should still works fine.")
+    message(WARNING "Missing tools (rpm package) for building rpm package. \nYou won't be able to generate rpm package from source code.\nCompiling libnetconf2 should still work fine.")
 else ()
     # target for local build rpm package
     string(REPLACE ${PROJECT_SOURCE_DIR} "." EXCLUDE_BUILD_DIR ${PROJECT_BINARY_DIR})
@@ -157,7 +168,7 @@
 
 # libnetconf2 target
 add_library(netconf2 SHARED ${libsrc})
-set_target_properties(netconf2 PROPERTIES VERSION ${LIBNETCONF2_VERSION} SOVERSION ${LIBNETCONF2_SOVERSION})
+set_target_properties(netconf2 PROPERTIES VERSION ${LIBNETCONF2_VERSION} SOVERSION ${LIBNETCONF2_SOVERSION_FULL})
 
 if((CMAKE_BUILD_TYPE STREQUAL debug) OR (CMAKE_BUILD_TYPE STREQUAL Package))
     option(ENABLE_BUILD_TESTS "Build tests" ON)